Halal savers account

There's no such thing as a Halal credit card. That is an oxymoron like stunned Halal chicken. A prepaid debit card is ok if you want to use something to buy online and protect against theft and such, but a credit card is haram no matter what is the institution that gives it.

If you wish to save your money in an Islamic bank institution, choose an Islamic current account, not a savings one. Many pseudo-islamic institutions offer "profit"-bearing savings accounts, those are again however outright usury and unislamic despite their claims.

If you want better advice, buy gold these days, for paper currency is no longer a valid method of preservation of value.

Well , I donot know which country you are and what are the laws there , I am also not sure that whether Halal Credit Card is available or not but I am quiet sure that at least Halal Debit Card is available in many muslim countries atleast in mine.

About opening account as you are 18+ and if you are jobless and have no income so i think atleast you can open a student account.

some people have credit cards to take advantage of the protection you get for buying items this way i.e. if you spend more than a £100 and the company you bought something off fails to deliver, you can make a claim through the finance company. If you pay the balance off in full by the due date then there isnt any interest to pay so correct me if I'm wrong but I dont see any harm in doing this inorder to get this benefit.

No, that is still not halal. Absolute majority of scholars agreed that simply signing on the credit card agreement even if planning to pay it off every month without acruing any interest is still haram.

You sign on a contract where you agree to being involved in a major sin, that means you are expressing you are agreeing to interest. That already is a pronouncement of evil.

Also no matter how well you plan, you cannot control the future, an accident can leave you out cold for a week and miss your payment, or simpler still by just forgetting to deposit the money at the machine after planning to until the bank hits you with interest and late charges.

If you are afraid to buy from crooked sellers then don't buy online except from official, reputable or places with proper clearance intermediaries from which you can claim your money that you paid through debit card or paypal if the seller doesn't deliver the product.

^ If the agreement says anything about paying for his purchases and him paying it back, and if delayed there will be interest or such, it is undoubtedly usury and the scholars agreed that it is forbidden.

Some institutions call their prepaid debit card as a prepaid credit card, and the agreement does not mention any loaned payments on his behalf or any interest, they simply reject any payments that go above the amount that is on the card, then that is permissible as it is a tool of payment only.

There are no halal credit cards,

just get a normal islamic savers account, some give you some profit they get from their investments - its usually something small like 0.001%

format_quote Originally Posted by aadil77

some give you some profit they get from their investments - its usually something small like 0.001%

That small amount is still usury though, and it comes from their "investments" of loaning your money to others who swallow the "Islamic" credit card and tawarroq claims.

The prophet -s.a.a.w.- said "One dirham of interest is worse to Allah than 36 instances of Zina (adultery)" So it is most important that we steer clear from even the smallest of questionable amounts.

format_quote Originally Posted by Sampharo

That small amount is still usury though, and it comes from their "investments" of loaning your money to others who swallow the "Islamic" credit card and tawarroq claims.

The prophet -s.a.a.w.- said "One dirham of interest is worse to Allah than 36 instances of Zina (adultery)" So it is most important that we steer clear from even the smallest of questionable amounts.

How can you be so sure that all 'islamic' banks do this? What I was talking about is what I've learnt from the islamic bank of britain, they don't have any islamic credit cards or loans that they gain interest from, their investments are in 'halal' companies, the profit they receive from that is then split up amongst saver accounts. You can tell it isn't usuary because the rate you get is so small and always varying that its obvious they must be getting this from investments, if it was usuary they would have much higher rates comparable to non-islamic banks.

Brother, are you talking about the bank that is publishing the following on its website?:

Product Indicative Expected Profit Rates (Gross p.a)
As from March 1st, 2010 On Demand Savings Account

0.10%

Direct Savings Account

0.20%

60 Day Notice Account

1.25%

Young Persons Savings Account

0.10%

Fixed Term Deposit (3 months)

0.10%

Fixed Term Deposit (6 months)

1.75%

Fixed Term Deposit (12 months)

2.00%

Fixed Term Deposit (18 Months)

2.25%

Fixed Term Deposit (24 Months)

2.50%

That was from IBB website. Which part of that can one regard as "investment"? And what is it about 24 month deposits producing 2.5% per annum that can be regarded as not usury and is not near to regular interest rates?

Brother, any set return is dirhams for dirhams, which is usury and interest. The prophet -s.a.a.w.- said "Any loan that precedes benefit is interest"

If it was investments there needs to be a breakdown of the invested commodities and products, an income statement, and more importantly no barring of loss.

"The Islamic bank does not guarantee the saver’s money, rather it is exposed to profit or loss, and it does not give a fixed amount if it is profitable, rather it gives a certain share according to the agreement between them. "

http://www.islamqa.com/en/ref/85408/...ngs%20accounts

If IBB is gladly announcing their "Profit Rates" for up to two years in advance and commits to them, and is differentiating between people who commit to leaving their money longer against those who don't commit to it, and do not expose the money to normal profits and losses of the market, then it s interest-based with a name change.

True Islamic account needs to be a Mudharaba account that is susceptible to profit and loss, with return only being announced after being achieved (for sure will not be a rounded set number of 2.5%) and transparently showing the deals made if requested.

format_quote Originally Posted by aadil77

How can you be so sure that all 'islamic' banks do this?

I am not bashing IBB for I do not know everything they do. The important thing to learn is that not all Islamic banks are good banks and reliably Islamic. A few banks are abiding fully by Shariah laws, others are using more lenient methodologies to give profit to saving account holders and tie it to Mudaraba and Murabaha and such, but many many many so-called Islamic banks call themselves that but are full interest-based banks who produce credit cards and personal loans and claim it is based on Shariah.

"But if these banks are Islamic in name only and they deal with riba and other forbidden transactions, then dealing with them is haraam, even if they call themselves “Islamic banks”, because what counts is what really happens, not mere names.
The Standing Committee for Issuing Fatwas was asked: Is it permissible to deal with Islamic banks, even though some of them go against sharee’ah and engage in kinds of transactions that are forbidden?
They replied:

It is permissible to deal with banks and financial institutions that do not deal with riba. But if they deal with riba then it is not permissible to deal with them, and they are not Islamic banks.

Fataawa al-Lajnah al-Daa’imah, 13/310."


So muslims need to learn that there is great evil and misdirection spreading across the World called "Islamic banking" that has a huge section of it consisting of no more than licensed loansharks (just like regular banks) who have a good PR and marketing campaign to convince muslims they are working under valid Islamic principals, when they're not and wouldn't care to. Those institutions we shouldn't deal with AT ALL as even having a current account helps them in their loansharking business and is considered "assisting in sin and aggression". They claim to have a shariah council, but they are more like deviants who are earning money from the bank to smile in press releases and promote them.

Some take lenience with some products like IBB here, but largely steer clear from outright interest, and you as a muslim need to be careful about what products you subscribe to, but it is fine to use the rest of the bank's facilities if they satisfy shariah and the bank is not partaking in outright interest collection.

Only a very small section is actually abiding properly. There are proper Islamic financial institutions that abide by everything that came from the prophet -s.a.a.w.- and the companions.

Good Islamic institutions will not offer saving accounts that have set return rates attached to interest rates, and will not offer "profit" charging credit cards or personal loans, but will work with Islamic financing of homes and business assets along with actual investments in the markets, while offering banking accounts for retail and business customers based on fees for their services.

As an example of a proper Islamic financial institution, you can see Kuwait Finance House in Kuwait. Funny that they don't "plug" the word Islamic in the name yet are sticking to Islamic Shariah finance principles. So yes they have bank accounts and financing and everything, yet their savings account is a "Qard Hasan" account where no money is paid or subtracted. (Strangely enough though their branches out of Kuwait offer profit generating savings account *shrug* but at least at changing rates announced at the end of each month, and do not guarantee any of these returns.)

I would not touch any questionable item even if 90% of scholars say it is ok "this way" or when you sign "that document" when the whole shabang is so unnecessary (what will 0.1% a year add to your life or welfare or wealth for you to risk it? and what would a credit card facility get you today that you couldn't buy yourself tomorrow?), while the price you end up paying (worse to God than 36 instances of adultery, remember.) can be so steep.

It's about the math, in the end. Wallahu 'AAlam.